AVPMF - Positive Preliminary Economic Assessment Completed for the Slivova Gold Project Kosovo

(TheNewswire)

Vancouver, BC - TheNewswire - September 6, 2023 - Avrupa Minerals Ltd. (AVU:TSXV) (OTC:AVPMF)(TSX-V:AVU) (FRANKFURT:8AM) is pleased toannounce that its partner at the Slivova Gold Project in the Republicof Kosovo, Western Tethyan Resources (“WTR”), has provided apositive, independent Preliminary Economic Assessment (“PEA”)study based on the NI 43-101 Mineral Resources Estimate (“MRE”)previously reported by Avrupa on July 17, 2023 (see news release Slivova Mineral ResourceEstimate ).  Bara Consultingcompleted the PEA in accordance with CIM standards, and Avrupa haspublicly disclosed the document under NI 43-101 reportingrequirements.

The Slivova Project is located in the prolific VardarMineral Trend, about 30 km SE of Pristina, the capital of Kosovo. WTR can earn-in to 75% of the Project by funding exploration anddevelopment for Euro 1,800,000 over three years, and then a further10% by making certain milestone and success payments, producing anEnvironmental Impact Statement, delivering a Feasibility Study, andcompleting a Mining License application.  WTR is 75%-owned byAIM-listed Ariana Resources.

Highlights from the PEA include:

• Slivova provides a conceptual pre-tax Net Present Value(NPV 8%) of US$27 million, and an internal rate of return (“IRR”)of 29% at a gold price of US$1,835/oz.

• Capital expenditure is estimated at $33.4 million andsustaining capital requirements of $9.4 million are envisaged in thestudy.

• Average production of 13,000 ounces of gold per annumprojected over a seven-year mine life from a combined open-pit andunderground mining operation is estimated from the study.

• Gold recovery by the Carbon-in-Leach (“CIL”)method, with recovery of gold at 92-94.5% Au(based on current testwork) and a processing rate of 142,000 tpa isestimated from the study.

The full PEA document, which includes the NI 43-101Mineral Resource Estimate, may be accessed on SEDAR+ or via the AvrupaMinerals website: SlivovaPEA

The independent Qualified Person for Mineral Resourcesas defined by NI 43-101 is Mr. Richard Siddle, MAIG, of Addison MiningServices Ltd. Mr. Siddle has reviewed and approved the scientific andtechnical content of this news release.  The Qualified Personcompleted a site visit to the project on 13 June 2023, and hasinspected the property, drillhole locations and has reviewed selectedintervals of the drill core used in the Mineral Resource Estimate. Noconcerns were identified during the visit.

The independent Qualified Person for the disclosure ofthe Preliminary Economic Assessment, as defined by NI 43-101, is Dr.Andrew Bamber, BSc, MASc, PhD, P.Eng. of Bara Consulting Limited. Dr. Bamber has reviewed and approved the scientific and technicalcontent of this news release, in the form and context in which itappears. Dr. Bamber completed a site visit to the project on 15February 2023 and inspected the property, core samples, and visitedlocations relevant to the project including the gossan outcrop and potential access road, process plant, andtailings sites within the license area.

Paul W. Kuhn, President and CEO of Avrupa Minerals,commented , “We are delighted about the progressmade at the Slivova Gold Project by Western Tethyan Resources andassociated company Ariana Resources.  In the past two months theMineral Resource Estimate has been updated, and a positive PreliminaryEconomic Assessment has been completed by our partners.  We lookforward to seeing more positive results from the upcoming Q4 2023/Q12024 work field work program, including trenching and drilling, the Q42023 initiation of an Environmental Baseline Study, and continued,strong and proactive ESG work in the project area.”

Mentor Demi, Managing Director of Western TethyanResources, added , “The PEA prepared by Bara Consultingprovides strong evidence that the Slivova Gold Project has thepotential to develop into a profitable gold mine of modest size, evenif no additional resources are identified. By showcasing a compellingeconomic viability, it also provides the basis for commencing the nextphase of detailed exploration and techno-economic studies.  Inconjunction with the pre-established infill resources drill program,WTR is commencing a trenching program to enhance exploration in theareas bordering the primary resource zone, specifically targetingDzemailj and Valijevishte. Throughout Q4, the company intends toinitiate the Environmental Base Line Study, the Social ImpactAssessment, and complete the planning for a drilling program, with theactual drilling activities scheduled to commence in the first quarter(Q1) of 2024.”

Dr. Kerim Sener, Managing Director of ArianaResources , added, “This is an excellent positive outcomefor the Slivova Gold Project, demonstrating its potential economicsand highlighting opportunities to enhance the project in the longerterm.  The broader exploration potential of the Slivova project area,in particular the opportunity to define further mineralisationdown-plunge of the existing orebody, bodes well for further economicupside.  We are now looking to complete further work to demonstratethis upside, via a phased exploration programme, which will target thedefinition of additional resources and further investigate variousaspects of the proposed mine design and processing route, among othertechnical matters.”

Following is a summary discussion of important pointsfrom the PEA (from Western Tethyan Resources):

Introduction

The Slivova Gold-Silver Project (“the Project”) islocated some 30 km southeast of Pristina, the capital of Kosovo.  TheProject was acquired by AVU Kosova, a wholly owned subsidiary ofAvrupa Minerals (“Avrupa”), which was granted a seven-yearexploration licence for the Project in 2022. In May 2023, WesternTethyan Resources Ltd (“Western Tethyan”, “WTR” or “theCompany”) executed an earn-in agreement with Avrupa, in which WTRcan earn-in up to 85% of the project.

Bara Consulting Limited (“Bara”) was engaged by WTRto prepare a Preliminary Economic Assessment (“PEA”) for Slivova.The study comprises the updated Mineral Resource Estimate (announcedseparately on July 17, 2023) and mining and tailings managementassessments, which were used as inputs into a concept leveltechno-economic evaluation prepared in accordance with CIM guidelinesand disclosed in accordance with NI 43-101 reporting requirements.

Project Location

The Slivova Project exploration license is locatedalong the Vardar Mineral Trend, approximately 30 km (30 minutes bycar) southeast of Pristina, the capital city of Kosovo.  Access tothe Project is via the Pristina-to-Gjilan, two-lane highway and thenan unsealed road beyond the village of Peshter.

There are four main exploration targets within theSlivova licence: Peshter, Dzemail, Valjeviste, and Brus. The Peshterprospect is further subdivided into three portions: the Main Gossan,Gossan Extension, and the Sandstone Gossan. The Peshter prospect isthe main subject of the PEA, for which there is material disclosure(Figure 1).

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Figure 1: TheSlivova deposit (Peshter Target), and its associated licenseboundary.

Project Geology

Within the Slivova license, two units are identified:the calcareous unit and the non-calcareous greywacke unit.  They aremoderately- to steeply-dipping, northwest striking, and beyond themineralized prospects, tend to be unaltered and weakly to moderatelyoxidized.

Two types of intrusive dykes and sills were identifiedin the mapping and drilling: hornblende-biotite porphyry dykes andstock, and a feldspar porphyry dyke.  The dykes represent less than3% of the total rock volume within the Main Gossan, with thehornblende-biotite porphyry representing 99.5% of the intrusive rocks. Within the Gossan Extension, the hornblende-biotite porphyry isrepresented by a greater volume of rock and may be a series ofnortheast-trending dykes, or a larger stock.

Economic mineralization in the Main Gossan and GossanExtension is concentrated in the calcareous pebble conglomerate andcalcareous sandstones.  Mineralization at Slivova is classified as adistal, intrusive-related, stratiform, massive to disseminatedgold-silver-lead-zinc deposit. The principal minerals of economicinterest are gold with minor amounts of galena, sphalerite,chalcopyrite, and silver. The gangue mineral assemblage consists ofilvaite(?), trace magnetite, arsenopyrite, pyrrhotite, marcasite,pyrite, quartz, and various carbonates.  Trace elements includearsenic, bismuth, chromium, manganese, nickel, and vanadium.

Mineral Resources

The Mineral Resource Estimate, as previously announced,has an effective date of 22 June 2023.  The Mineral Resource Estimatefor Slivova, completed on July 14, 2023, is reported in Table 1 and isbased on the block model shown in Figure 2.  No estimates of MineralReserves have been prepared. Mineral Resources are not MineralReserves and do not have demonstrated economic viability.  Theestimate of Mineral Resources may be materially affected byenvironmental, permitting, legal, title, taxation, socio-political,marketing, or other relevant issues. The Qualified Person is not awareof any such issues at the time of writing.

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Figure 2: Oblique view of the block model showing the estimated gold grades.WGS84 Z34N.

Table 1: Estimated Mineral Resources for Slivova. Numbers are rounded to anappropriate number of significant figures, and as such, discrepanciesmay exist between individual values, products, and totals.

Notes to the Mineral ResourceEstimate (1-9):

1. The independent Qualified Personresponsible for Mineral Resource disclosure, as defined by NI 43-101,is Mr. Richard Siddle, MSc, MAIG, of Addison Mining Services Ltd. Theeffective date of the Mineral Resource Estimate is 22 June2023.

2. Mineral Resources are not MineralReserves and do not have demonstrated economic viability. There is nocertainty that all or any part of the Mineral Resource will beconverted to Mineral Reserves.

3. A gold equivalent (AuEq) grade wascalculated for each block using the formula AuEq = (Ag g/t x 0.05) +Au g/t. It is the opinion of the Qualified Person that all elementsincluded in the Au Equivalent calculation have a reasonable prospectof being recovered and sold, the calculation of the Au equivalentvalue considers the relative recovery and payability of each element(recovery by cyanide leaching of 93.4% for gold and 50% for silver and95% and 85% payability, respectively, as informed by metallurgicaltest work completed to date) as well as the assumed commodity prices.

4. Reasonable prospects of eventualeconomic extraction are satisfied by the estimation of break-evencut-off grades for each anticipated mining scenario (0.5g/t AuEq foropen pit and 1.5g/t AuEq for underground mining). These cut-off gradeswere used to report the Mineral Resource. The cut-off grades wereestimated on the basis of the following assumptions: a gold price ofUS$1850/oz (selected following consideration of (1, 2 and 3 yeartrailing average LMBA gold price and LMBA 2023 average forecast goldprice, a silver price of US$20/oz, underground mining costs ofUS$43.7/t, processing costs (including tailings disposal) of US$29.5/tand GA costs of US$3/ROMt.

5. Estimates in the above table havebeen rounded to three significant figures for Measured and IndicatedResources and two significant figures for Inferred MineralResources.

6. CIM Definition Standards for MineralResources have been followed.

7. The independent Qualified Person forResources is not aware of any additional known environmental,permitting, legal, title, taxation, socio-political, marketing, orother relevant issues that could materially affect the MineralResource Estimate.

8. TheMineral Resource figures set out above are quoted gross with respectto the Project. WTR of which Ariana owns 75%, has yet to establish anet attributable interest under the Earn-in and accordingly, noseparate net attributable figures are reported.

9. Western Tethyan Resources is the operator of Slivova

Mine Design

A revised approach to the mining of Slivova involves asmall starter pit to access the outcropping mineralized gossan area,followed by underground extraction of the gold resource below the openpit at an appropriate extraction rate to suit the size and grade ofthe deposit.  Mine design involved a more detailed analysis of thepotential mining method and a mineable stope optimization exercise tofully assess and define the underground stoping extents.

A geotechnical review was undertaken to validateextraction methods.  Ore zones and host rocks are eithernon-calcareous or calcareous sequences of altered sedimentary rockswith ore zone strengths varying between 45 MPa and 50 Mpa.  Minedesign was adapted to be flexible to varying competencies of hostrock, particularly in the contact areas.

The starter pit has been designed to be mined from thetop bench downwards with ore being accessible and extractedimmediately, i.e., there is no requirement or need for anypre-stripping. It has been assumed that this small open pit can bemined by local contractors who have quarries within the vicinity ofthe proposed mine at Slivova. The revised starter pit design is alsosituated such that there is now no requirement for stream re-alignmentwhere the pit can be accessed for initial extraction via existingtracks on the north side of the stream. Pit extents minimize theimpact on the surrounding countryside and local communities.

Due to the requirement for a 25 m crown pillar, thebottom bench was modified to a base of 865 mRL.  Bench access waslinked into the existing tracks and roads on the site.  This allowsfor easy access to each bench for overburden and ore removal withoutthe need for any ramps. Access to the bottom bench is directly in fromtopography. Pit operations cease after Year 1.

Underground access is envisaged as a portal developeddirectly into the south valley wall, supporting mining typically bysublevel open stoping, unless ore zone geometry dictates a step downto cut-and-fill methods. Main sublevels are 20 m, with stopingseparated 25 m from the open pit bottom by a crown pillar which willbe mined by sublevel caving methods at the end of mine life.

Mining is suggested to be via small teams ofapproximately 16 people per shift, using small diesel fleetappropriate for production at between 300 t/day and 400 t/day. Minedmaterial to be trammed directly from underground operations throughthe portal to the primary crusher tip located at the plant site on thesaddle of the southern ridge 500 m to the east.

Recovery Methods

Results of extensive characterisation and testing ofthe Slivova ore by a range of methods suggest that treatment would bevia carbon-in-leach (“CIL”) methods, delivering gold recovery of92-94.5% and silver recovery of 19.8-22.5%.  Some gold may beextracted via gravity recovery methods.  Nominal plant throughputwill be 142,000 tpa, with primary, secondary, and tertiary crushing ofthe ore, followed by ball milling to 106 ? m and leaching of the ore by CIL methods.Loaded carbon is stripped, with electrowinning and final EAF smeltingof the dore? to bullion on site.

Environmental

The environmental and social work completed to date isin line with that required for the PEA based on the revised miningplan.  No environmental or social fatal flaws have been identified,and Bara is not aware of any environmental or social issue that wouldprevent the project from proceeding to the PFS phase, during whichtime various potential environmental risks would need to be evaluatedfurther.

Economic Analysis

The economic analysis presented here is preliminary innature and is based in part on Inferred Mineral Resources that areconsidered too speculative geologically to have the economicconsiderations applied to them that would enable them to becategorised as Mineral Reserves. There is therefore no certainty thatthe PEA presented here will be realised.

PEA level economic analysis is based on the productionschedule presented with capital and operating cost estimates for theSlivova Project and other information as of July 2023. The discountedcashflow analysis (“DCF”) is presented in United States Dollars(US$) in real money terms, free of escalation or inflation.  Revenuehas been determined through application of the recovered troy ouncesproduced by Slivova to the gold and silver prices as stated, lesspayability.

Depreciation has been calculated on the assumption that100% of capital expenditure may be deducted from profits in the yearthat they are incurred (Deductibility Rate). It is assumed that allcapital expenditure is eligible for deduction.  A discount rate of 8%has been used for the evaluation, and no tax treatment has beenapplied.

The conceptual DCF analysis shows the Project iseconomic with a pre-tax net present value (“NPV”), at 8% discountrate, of US$27 million, and an internal rate of return (“IRR”) of29% with upfront capital requirements of $33.4 million, and sustainingcapital requirements of $9.4 million.

Western Tethyan Minerals (WTR) is a UK-registered, mineral exploration anddevelopment company focused on South East Europe. The company has astrategic alliance with Newmont Corporation and Ariana Resources andis currently focused on exploration for major copper-gold deposits inthe Lecce Magmatic Complex and Vardar Belt. The company is assessingseveral other exploration project opportunities across Eastern Europe,targeting copper-gold deposits across the porphyry-epithermaltransition.

Ariana Resources is an AIM-listed mineral exploration and development companywith an exceptional track-record of creating value for itsshareholders through its interests in active mining projects andinvestments in exploration companies. Its current interests includegold production in Turkey and copper-gold exploration and developmentprojects in Cyprus and Kosovo.

Avrupa Minerals Ltd. is a growth-oriented junior exploration and developmentcompany directed to discovery of mineral deposits, using a hybridprospect generator business model.  The Company holds one 100%-ownedlicense in Portugal, the Alvalade VMS Project, presently optioned toSandfire Mineira Portugal in an earn-in joint venture agreement.  TheCompany now holds one 100%-owned exploration license covering theSlivova gold prospect in Kosovo, and is actively advancing fourprospects in central Finland through its in-process acquisition ofAkkerman Finland Oy.  Avrupa focuses its project generation work inpolitically stable and prospective regions of Europe, presentlyincluding Portugal, Finland, and Kosovo.  The Company continues toseek and develop other opportunities around Europe.

For additional information, contact Avrupa Minerals Ltd. at1-604-687-3520 or visit our website at www.avrupaminerals.com .

On behalf of theBoard,

“Paul W. Kuhn”

Paul W. Kuhn, President & Director

This news release was prepared byCompany management, who take full responsibility for its content. Paul W. Kuhn, President and CEO of Avrupa Minerals, a LicensedProfessional Geologist and a Registered Member of the Society ofMining Engineers, is a Qualified Person as defined by NationalInstrument 43-101 of the Canadian Securities Administrators.  He hasreviewed the technical disclosure in this release.  Mr. Kuhn, the QP,has not only reviewed, but prepared and supervised the preparation orapproval of the scientific and technical content in the newsrelease.

Neither TSX Venture Exchange nor itsRegulation Services Provider (as that term is defined in the policiesof the TSX Venture Exchange) accepts responsibility for the adequacyor accuracy of this release.

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